EVENDALE, OHIO - China Eastern Airlines Co., Ltd., one of China's largest airlines, has signed an agreement to become a major shareholder in GE Engine Services (Xiamen), an engine overhaul joint venture (JV) company in Xiamen, China.Under the agreement, China Eastern will acquire a 30 percent share to become the second largest shareholder in GE Engine Services (Xiamen). In addition, China Eastern will also be entering into a service agreement with GE Engine Services (Xiamen) that will provide significant CFM56 engine overhaul work to the Xiamen operation. Based in Shanghai, China, Eastern operates the largest installed fleet of CFM56 engines in China.The company, GE Engine Services (Xiamen) Company Ltd., was formed in February 1999 by its initial shareholders, GE Engine Services, Xiamen Aviation Industry Company Ltd. (XAICO), and Taikoo (Xiamen) Aircraft Engineering Company Ltd. (TAECO).GE Engine Services (Xiamen) is scheduled to begin operation by late June 2001 from a new, state-of-the-art facility in Xiamen, a special economic zone within the Fujian Province of People's Republic of China. The company will perform overhaul and repair of engines produced by GE Aircraft Engines and by CFM International, a 50/50 joint company of Snecma of France and GE."The participation of China Eastern will provide momentum when the joint venture begins operations in June," said George Oliver, president of GE Engine Services, Inc., headquartered in Cincinnati, Ohio (U.S.A.). "It will also help to establish the JV as a more customer-focused hub for GE's Engine Services support structure in China as well as for the region.""The participation of China Eastern in the joint venture not only helps to improve the efficiency of our engines, but also reduces the overhaul cost," said Liu Shaoyong, president of China Eastern Airlines. "China Eastern and GE already have an outstanding relationship. Today's signing ceremony marks an important step in our strategic cooperation. We will continue to look for further cooperation in the future."Following the signing of this agreement, GE Engine Services Inc. and China Eastern Airline intend to pursue other possible opportunities for alliances in the near future.XAICO is a high-technology, export-oriented company focused on the development of the aerospace, aircraft maintenance, and related industries in Xiamen.TAECO, another prominent Xiamen company, is a leading international aircraft maintenance company providing service to airlines throughout Asia, including China, and worldwide.Headquartered in Shanghai, China Eastern Airlines is one of the three largest air carriers in China with 7 subsidiaries in East and North China. The company now has a fleet of around 60 aircraft and operates 200 air routes serving 70 cities both at home and aboard. In recent years, China Eastern has won the highest awards for Safe Flight from CAAC. In March 2001, China Eastern Airline was given the highest qualified service award, the "Five Star Diamond Award", by the American Academy of Hospitality Sciences.GE Engine Services is the world's leading aviation service provider. The Xiamen operation is part of GE Engine Services' global network of Centers Of Excellence (COE), which include international overhaul and repair facilities in: Nantgarw, Wales; Prestwick, Scotland; Tokyo, Japan; Singapore; Kuala Lumpur, Malaysia; Petropolis, Brazil; as well as U.S. based facilities in: Cincinnati, Ohio; Strother Field, Kansas; Dallas, Texas; and Ontario, California, in addition to Garrett Aviation's six Total Aircraft Service Centers.General Electric, the parent company of GE Engine Services, is a diversified services, technology and manufacturing company with a commitment to achieving customer success and worldwide leadership in each of its businesses. GE began to develop trade with China as early as 1910. Today, GE has established 30 joint ventures or wholly owned enterprises in the country, employing around 8,000 people. GE's investment in China amounts to over US$1.5 billion.